Annual Report and Accounts 2009-10 - Welfare Reform impact ...

Management Commentary
The ILF requests and receives grant in aid on a monthly basis to meet
its immediate cash needs. Procurement policies are designed to secure
goods and services for immediate consumption during the year with best
value for money at current cost, and without setting up complex financial
instruments. The ILF’s exposure to financial instrument risk is therefore low
compared with non-public sector organisations. The accounting policies
on financial instruments are provided in the Notes to the Accounts, and
appropriate disclosures are included.
The Accounts have been prepared in accordance with the Trust Deed
and directions made by the Secretary of State for Work and Pensions
thereunder. The Accounts have been prepared in compliance with
International Financial Reporting Standards (as adapted or interpreted for
the public sector context) for the first time this year, and the appropriate
disclosures in respect of first-time adoption have been made.
All financial and other matters necessary for an effective external audit
have been disclosed to the auditors. As far as the Chief Executive and
Trustees are aware there is no relevant audit information of which the
auditors are unaware; the Chief Executive and Trustees have taken all
the steps that they ought to have taken to make themselves aware
of any relevant audit information and to establish that the auditors
are aware of that information.
The Accounts are prepared on a ‘going concern’ basis. Grant in aid is
received on a cash basis to meet immediate need, and is not accrued
to match liabilities. Grants to individuals are paid in arrears and the
Statement of Financial Position at 31 March 2010 shows a net deficit.
DWP has provided a letter of comfort to Trustees to confirm that grant
in aid will be made available to cover the financial obligations of the
ILF related to DWP-funded activity and to continue the ILF’s activities
up to March 2011.
There were no events after the end of the year and up to the date of
signing that have any material effect on these Reports and Accounts.
45 Annual Report and Accounts 2009-10